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Updated almost 8 years ago,
Multifamily rental property, a ratio of expenses to income
Hi,
I used to think an average ratio of gross expenses to gross income for multifamily rental property should be at least 50%. It is about OH properties which are 40-50 years old. But what's interesting, financial statements of the same buildings in AZ show a smaller ratio (about 40%). Is there any logical explanation? Could relatively warm climate decrease average expenses? Or it’s just a story?
Thanks.